Ciena, Kmart top estimates

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Positive surprises

Ciena
CIE, -0.73%
posted second quarter adjusted earnings of 20 cents per share vs. 6 cents per share last year. The latest number is 4 cents ahead of the forecast for 16 cents per share in a survey of analysts by First Call/Thomson Financial. The optical networking firm said it's promoting Gary Smith to president and chief executive officer. Second quarter revenue was $425.4 million vs. $185.68 million last year. Ciena pegged full-year earnings in the range of 72 to 75 cents per share, within the range of the consensus forecast for earnings of 73 cents per share. Ciena shares fell 3.7 percent to $56.75.

Kmart
KM
reported fiscal first-quarter loss of $10 million, or 2 cents a share, excluding severance charges, compared with income of $22 million, or 6 cents a share in the year-earlier period. Analysts surveyed by First Call/Thomson Financial had pegged losses at 7 cents per share. Total sales for the period rose 1.7 percent over last year to $8.34 billion, and same-store sales increased 1.7 percent. "These results are in-line with our plan to fix our business by taking decisive, aggressive, and focused steps to transform our company," said Chuck Conaway, Kmart's chairman and chief executive. Kmart shares rose 4.4 percent to close at $10.58 Thursday.

Pep Boys
PBY, +0.73%
shares jumped more than 33 percent to $7.90 Thursday, after the Philadelphia automotive products and services firm reported first-quarter earnings of $9.1 million, or 18 cents a share, up from a year-ago profit of $6.4 million, or 13 cents a share, and a nickel ahead of Wall Street expectations. The year-ago results include a gain of $2 million, or 4 cents a share, on early retirement of debt. Pep Boys attributed the strong results to improved merchandise and service center margins and lower operating expenses, which offset a sales decline of 10.3 percent to $551.4 million from $614.8 million in the same period a year ago. In addition, the company said it expects continued improvement in merchandise margins and gross profit from service center operations.

Green Mountain Coffee
GMCR
dropped 30 cents to $33.30, after the Waterbury, Vt., coffee firm reported first-quarter earnings of $1.2 million, or 17 cents a share, up from a year-ago profit of $615,000, or 9 cents a share, and 3 cents ahead of the average estimate of analysts polled by First Call/Thomson Financial. Sales jumped to $22.7 million in the latest three months from $18.3 million in the same period a year ago.

Venator Group
Z, -0.66%
reported a first-quarter profit of $34 million, or 24 cents a share, up from the prior year's $27 million, or 20 cents a share. The consensus among 10 analysts as determined by First Call/Thomson Financial was for the company to earn 23 cents in the three months ended May 5. Sales rose by 3.8 percent to $1.055 billion, as the specialty athletic retailer's comparable-store sales increased 4.8% vs. the year-ago quarter. The results, adjusted to exclude disposed non-core operations as well as store closings, reflected gross-margin improvement as well as a tight rein on costs, according to CEO Matthew Serra. He said New York-based Venator is 'comfortable' with profit forecasts ranging from 12-to-14 cents for the second quarter, down from 20 cents earned in the year-ago period, and from 90-94 cents for the full year. This implies a resumption of profit growth in the second half. Venator shares finished the day up 12 cents at $13.92.

Negative surprises

Credence Systems
CMOS
posted a second-quarter pro forma net loss of $13.6 million, or 26 cents a share, excluding a $47 million charge. Analysts surveyed by First Call/Thomson Financial projected a loss of 18 cents a share. Quarterly sales sank 72 percent, year-to-year, to $43.3 million due to a significant decline in orders for its production ATE equipment. The automatic test equipment maker said it has cut 21 percent of its work force and instituted pay cuts to reduce costs. Credence shares fell 3 percent to $24.03.

Armor Holdings
AH, -0.79%
shares moved down 5.5 percent to $12 Thursday, a day after the security products maker recorded net income of $3.1 million, or 13 cents a share in the first quarter, excluding a $8.7 million restructuring charge, compared to $4.5 million, or 19 cents, in the same quarter a year earlier. Analysts surveyed by First Call/Thomson Financial projected a profit of 18 cents. Quarterly sales fell 2 percent to $50.8 million from $49.8 million in the same quarter a year earlier.

Akorn
AKRN, +4.08%
shares fell 9.2 percent Thursday, after plunging 44 percent Wednesday when the specialty pharmaceutical company said it has delayed filing its 10-Q for the first quarter to make "significant" changes to its financial reserves. Akorn said the changes to its reserves and a charge will impinge its quarterly results. The company, which expects to post a net loss between $10 million to $15 million for the first quarter, also said it's holding talks with lenders seeking relief on its senior debt.

Earnings advisories

CBRL Group
CBRL, -0.60%
tumbled 18 percent to $17.81 Thursday after the Lebanon, Tenn., casual restaurant firm reported third-quarter earnings of $14.6 million, or 26 cents a share, up from a year-ago profit of $14.4 million, or 25 cents a share, but a penny below the average estimate of analysts polled by First Call/Thomson Financial. The company said the results were in line with its previous disclosed target range. Revenue rose 7.4 percent to $468.1 million in the period. Same-store sales at its Cracker Barrel Old Country Stores rose 4 percent, while its Logan Roadhouse stores saw same-store sales fell 2.4 percent in the quarter. Looking ahead, CBRL said it expects fourth-quarter earnings in the high 40s, on a cents per share basis, below the current Wall Street consensus view of 51 cents.

Retek
RETK
said it expects to exceed consensus analyst estimates for break-even results on revenue of $41 million in the second quarter. Details were not given. The provider of software for the retail industry said the announcement comes in conjunction with its analyst day being held in Minneapolis. The shares rose popped 20 percent.

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